Chokepoint threats to LNG trade are rising [Gas in Transition]

Chokepoint threats to LNG trade are rising [Gas in Transition]

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Natural Gas News
Chokepoint threats to LNG trade are rising [Gas in Transition]

Summary

Conflict in the Middle East and climate change pose major risks for LNG transit and, by extension, global energy security and greenhouse gas emissions. [Gas in Transition, Volume 3, Issue 11] by: Ross McCracken

Transit risk for the LNG industry has increased, owing to a lack of water in the Panama Canal and the threat of wider conflict in the Middle East. The latter could potentially impact LNG flows through the Strait of Hormuz and Gulf of Oman, the world’s busiest oil and LNG waterway, with devastating consequences for LNG supply, global energy security and greenhouse gas emissions. While issues with the Panama Canal are immediate, Middle East tensions are barely less so, centred around the potential broadening of the fierce conflict between Israel and Hamas in the Gaza Strip. Pressure on one chokepoint inevitably puts pressure on others. Other key waterways are the Suez Canal and the Strait of Malacca. In 2021, the accidental wedging of the Ever Given container ship for one week across the Suez Canal provided a sharp reminder of the importance of the canal to global trade in general and LNG shipping in particular. About 7% of glob...